The amount of seed money needed to get a low-cost startup airline based at Charleston's Yeager Airport off the ground was officially met Monday, when the Charleston and Central West Virginia convention and visitors bureaus voted to ante up $500,000 each.

The $1 million investment authorized by the two CVBs during Monday's joint meeting will be added to a $1 million pool of private funds already raised for the project. The state Jobs Investment Trust is expected to contribute an additional $1 million, completing the $3 million in seed money sought by the startup.

The Charleston Area Alliance, which had committed to spending up to $200,000 to ensure that the $3 million initial investment was met, apparently will invest $50,000 in the project, because the seed money threshold has been achieved.

Skybus Airlines founder and South Charleston native John Weikle, the man behind the concept of launching a low-cost startup airline based at Yeager, told CVB members he will seek an additional $40 million from investment banks. If he succeeds in raising the needed capital by the end of summer, he said the airline could be operational by December.

When asked by Charleston Mayor Danny Jones - a member of both CVBs - if he felt confident the $40 million could be raised, Weikle responded, "the prospects look very good."

Charleston CVB member Patricia Pitrolo recommended having two of seven seats on an interim board of directors for the new airline filled by one representative from each of the two convention bureaus "to help protect our investment." Her amendment passed on a unanimous voice vote, as did the decision to spend the $1 million in seed money.

Kanawha County Commission President Kent Carper, who also is a member of the Central West Virginia CVB, asked Weikle why his model for the as-yet unnamed startup airline will work at Yeager, while the low-cost carrier Independence Air, which operated out of Charleston until 2005, folded.

Independence Air made use of the hub-and-spoke system, with its main hub at Washington's Dulles International, and competed with major carriers on nearly all its routes, Weikle said. The low-cost operation envisioned for Charleston, he said, "will offer point-to-point service" with no connecting routes, on routes not served by major carriers.

Despite its flaws, Weikle observed, " Independence did very well here in Charleston."

While investing in the startup airline involves risk, the potential returns justify taking a chance on the startup, said Yeager Airport Director Rick Atkinson, also a member of both CVBs.

The amount of seed money needed to get a low-cost startup airline based at Charleston's Yeager Airport off the ground was officially met Monday, when the Charleston and Central West Virginia convention and visitors bureaus voted to ante up $500,000 each.

The $1 million investment authorized by the two CVBs during Monday's joint meeting will be added to a $1 million pool of private funds already raised for the project. The state Jobs Investment Trust is expected to contribute an additional $1 million, completing the $3 million in seed money sought by the startup.

The Charleston Area Alliance, which had committed to spending up to $200,000 to ensure that the $3 million initial investment was met, apparently will invest $50,000 in the project, because the seed money threshold has been achieved.

Skybus Airlines founder and South Charleston native John Weikle, the man behind the concept of launching a low-cost startup airline based at Yeager, told CVB members he will seek an additional $40 million from investment banks. If he succeeds in raising the needed capital by the end of summer, he said the airline could be operational by December.

When asked by Charleston Mayor Danny Jones - a member of both CVBs - if he felt confident the $40 million could be raised, Weikle responded, "the prospects look very good."

Charleston CVB member Patricia Pitrolo recommended having two of seven seats on an interim board of directors for the new airline filled by one representative from each of the two convention bureaus "to help protect our investment." Her amendment passed on a unanimous voice vote, as did the decision to spend the $1 million in seed money.

Kanawha County Commission President Kent Carper, who also is a member of the Central West Virginia CVB, asked Weikle why his model for the as-yet unnamed startup airline will work at Yeager, while the low-cost carrier Independence Air, which operated out of Charleston until 2005, folded.

Independence Air made use of the hub-and-spoke system, with its main hub at Washington's Dulles International, and competed with major carriers on nearly all its routes, Weikle said. The low-cost operation envisioned for Charleston, he said, "will offer point-to-point service" with no connecting routes, on routes not served by major carriers.

Despite its flaws, Weikle observed, " Independence did very well here in Charleston."

While investing in the startup airline involves risk, the potential returns justify taking a chance on the startup, said Yeager Airport Director Rick Atkinson, also a member of both CVBs.

In addition to bringing thousands of additional passengers to Charleston, the low-cost carrier would create fare savings and prompt other airlines to reduce ticket prices. Atkinson said an estimated $80 million in annual airline fare savings would occur at Yeager, based on current boarding figures and not taking into account the additional boardings the startup hopes to generate.

"There will be some people who will say that it's too far out of the box," Atkinson said, "but I think it's a risk worth taking."

Seed money totaling $3 million was raised to help launch Skybus Airlines at Port Columbus International Airport in 2006.

The low-cost airline operation Weikle hopes to launch in Charleston does not yet have a name, but its concept is known as Project New Horizons.

Tentative plans for the startup include heavy reliance on Internet ticket sales and a no-frills basic service with fees charged for such services as meals and beverages.

As many as 15 destination cities are being eyed for the startup, some of them targeting business fliers while others should attract mainly leisure travelers.

"We've looked at attracting an existing low-cost carrier to Charleston," said Carper. When that effort failed to bear fruit, it made sense to pursue the New Horizons option.

"And we're not putting all our eggs in one basket with this plan," Carper said. "Another airline announcement will be coming soon at Yeager, and it will be significant."

Information on what cities the startup would fly to is not expected to be made public at least until the end of March, because of Securities Exchange Commission guidelines on investment solicitations.

To contact staff writer Rick Steelhammer, use e-mail or call 348-5169.